BACKGROUND
In an important development, International Financial Services
Centres Authority (IFSCA) has issued the framework
for undertaking ship leasing business in the IFSCA
(Framework). The International Financial Services
Centres Authority (Finance Company) Regulations
(IFSCR), 2021 allows a Finance Company or a
Finance Unit to undertake permitted core and non-core activities
(the quantum of capital requirements vary as per the nature of
activity).
As regards ship-leasing, (a) activity of financial lease has
been categorised in the IFSCR as a "permitted core
activity", whereas (b) transactions permitted under the
Framework for Ship Operating Lease are classified as a
"permitted non-core activity".
